MAA103 Lecture Notes - Lecture 4: Accounts Payable
15 Aug 2018
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Document Summary
Resources owned/controlled by a business as a result of past events & which economic benefits are expected to flow to the entity. Used in carrying out such as production, consumption and exchange. Presents obligation of the entity arising from past events & settlement of which is expected to result in an outflow from the entity of resources leading to economic sacrifices in the future e. g. loans, wages payable. Represents the residual interest in the assets of the entity after deduction all of its liabilities. The owners rightful claim to the total assets net of any liabilities. How much the owners have invested/the assets the owner puts into the business. Gross increases in owners" equity from business activities entered into for the purpose of earning income. May result from sales, rent or lending. Income arising in the course of an entity"s ordinary activities. Are withdrawals of cash or other assets by the owner for person use.
